Relationship between lb and obc obc which like lb was

This preview shows page 7 - 9 out of 21 pages.

Relationship Between LB and OBC OBC, which, like LB, was founded in Chicago, was one of LB’s original clients. As one of the top three LB clients worldwide, OBC did business with most LB offices. OBC, however, awarded its business to advertising agencies brand-by-brand. As a result, other advertising agencies also had business with OBC. Competition among advertising agencies for OBC business was strong, in particular when they had to work together on joint brand promotions. OBC had been a client of LB’s Toronto office since 1958 and of LB’s London office since its acquisition in the mid-1970s. Both the Toronto and London offices initially developed advertising and communications materials for various OBC facial care brands and eventually also worked on OBC’s skin care brands. To better service OBC, LB also centralized its decision-making for this client’s brands and appointed expanded and strengthened global teams with the power to make global decisions. For its other clients, LB’s global teams were significantly smaller, tending to consist simply of one very senior LB manager who shared learning from across the globe with a given client’s senior management. For use only in the course Raleigh Residency #1 at North Carolina State University taught by Leigh Shamblin from August 22, 2018 to December 07, 2018. Use outside these parameters is a copyright violation. 7
Page 4 9B03M052 A NEW OBC BRAND: FOREVER YOUNG The OBC London office announced a new skin care line called “Forever Young.” Product formulas were based on a newly patented process that addressed the needs of aging skin. For OBC, this brand presented an opportunity to address a new market segment: the rapidly growing population of people over the age of 50. The product line was more extensive than other OBC skin care brands. It also represented the company’s first foray into premium-priced skin care products. Product cost, on average, was double that of most other OBC brands, falling between drug store products and designer products. OBC intended Forever Young to be its next big global launch and awarded the Forever Young advertising and brand communications business to LB. GLOBAL ADVERTISING AND COMMUNICATIONS TEAM FOR FOREVER YOUNG Team Formation For LB, a successful launch of this new product would significantly increase revenues and the likelihood of acquiring additional global OBC brands. An unsuccessful launch would risk the relationship with OBC that LB had built over so many years. LB management in Chicago decided that LB London would be the global team headquarters. This decision reflected the experience that the London office had in leading global business teams and the proximity to the OBC global team for Forever Young. It was also likely that the United Kingdom would be the test market for the new product.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture